A recent case in Mandurah has underscored the risks facing homeowners who engage unlicensed builders and fail to secure proper insurance coverage for renovation projects.
Legal proceedings concluded in late August, resulting in significant penalties for a local individual who misrepresented his credentials and failed to comply with Western Australian building regulations.
The dispute began when residents in Dudley Park contracted Paul Anthony Hart in October 2023 to renovate their home, with the project valued at $24,000. The planned works included structural changes and a full bathroom refurbishment.
Hart, a neighbour, assured the couple he was a registered builder – a requirement for projects of this size and complexity – but he did not hold the necessary registration.
Despite legal limits, Hart collected a $12,000 deposit, representing 50% of the contract value, well above the statutory maximum of 6.5% for home building works exceeding $7,500.
No formal contract was signed, and the project commenced without home indemnity insurance, leaving the homeowners exposed to financial risk.
Only partial demolition and plumbing work were completed before Hart abandoned the site. The homeowners were forced to hire another contractor, incurring an additional $27,000 to finish the renovation.
The Mandurah Magistrates Court found Hart guilty of four separate offences. He was fined:
The court also ordered him to pay $615 in costs and to return the deposit to the homeowners.
Magistrate Leanne Atkins described the situation as “extremely disturbing,” noting the impact on the affected homeowners, who had to seek alternative arrangements to complete their renovation.
Building and Energy executive director Daniel Kearney emphasised the importance of verifying builder credentials and adhering to deposit limits.
“This behaviour is unacceptable and has caused significant stress, inconvenience and financial impacts for the homeowners,” he said.
He reiterated that homeowners should not hand over deposits of more than 6.5% for home building works valued over $7,500.
“This law protects the homeowner from potential financial loss, which has unfortunately happened in this case,” Kearney said. “The registration process aims to ensure builders have the appropriate qualifications, skills, and experience to deliver safe and compliant buildings.”
Kearney recommended that homeowners use online resources or the ServiceWA app to confirm builder registration and to avoid large upfront payments.
Separately, Building and Energy has issued guidance for clients affected by the liquidation of Tingey Development Group Pty Ltd, a Perth-based residential builder.
The company, which entered liquidation on Sept. 10, has left 15 projects incomplete.
Homeowners are being advised to contact QBE, the home indemnity insurance provider, to discuss their options for financial protection and project completion.
“Home indemnity insurance provides financial protection for homeowners in situations such as the insolvency of their builder,” Kearney said. “Contacting the insurance provider enables homeowners to begin the process of engaging another registered builder to complete the work or managing other remedies they may be entitled to.”
Subcontractors impacted by the Tingey Development Group liquidation are directed to reach out to the appointed liquidators at Hall Chadwick.
Tingey Development Group is the third registered building contractor in Western Australia to enter insolvency during the current financial year.
